Commercial Vehicle Group (CVG) has recorded second quarter net income down from US$3.2m to US$2.7m, while revenue fell 18% to US$178m.
The company says the revenue decrease period-over-period is driven mainly by the retreat of North American heavy-duty truck production volumes from near historically high levels in 2015 and continued softness in the global construction and agriculture markets in which it operates.
Foreign currency translation also adversely impacted second quarter 2016 revenues by US$1.5m compared to the same period in the prior year.
Operating income in the second quarter 2016 was US$8.4m compared to US$11.6m in the prior-year period.
The fall in operating income period-over-period was primarily the result of decreased revenues, offset by operational improvements and the benefits from cost reduction and restructuring actions.
“The Global Construction group is making progress year over year which is reflected by improved profits on slightly lower sales, the Global Truck team is achieving our decremental margin expectations and our support groups are contributing through supply chain management, lean initiatives and spending control,” said CVG president and CEO, Patrick Miller.
“Additionally, a portion of the restructuring initiatives are already positively contributing to results. We are facing some difficult market headwinds and are working hard to manage the areas in our control which is showing up in the quarterly results.”